USD index shows some back-and-forth movement

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar         1.2550-1.2650

Euro                 1.4775-1.4875

Sterling            1.7250-1.7350

The US Dollar Index is for the most part unchanged to start the North American session, it did have some back and forth motion overnight but for the most part remains range bound in light volatility. The ship stuck in the Suez Canal and blocking one of the world's main trade routes may be there until next week and this will affect billions of dollars of trade but at the moment traders are looking beyond this trade disruption and pushing stocks higher after a few down days on the expectation of stronger US economic recovery. On a positive note, for the US economy, US weekly Jobless Claims numbers fell to a one-year low so a clear sign that the US jobs market is recovering.

The Canadian Dollar continues to range trade against the stronger US dollar with USD.CAD testing above the 1.2600 (0.7937) level for a short time last night before pulling back lower this morning. With the Loonie holding its own at the moment against all currencies it should continue to range trade over the short-term as it awaits the next big move for the US Dollar.

We do get some US secondary data in the form of Personal Spending and Income on the calendar today, these numbers are expected to show more signs that the US economy is on track and may give a small boost to the US Dollar.